The government has raised the price the government will pay to farmers for next year's wheat to Rs 1,400 per 100 kg, up from Rs 1,350 per 100 kg a year earlier, said a government minister on Thursday.
India, the world's second-biggest rice and wheat producer, sets a price to buy the grains from local farmers to build reserves for running the its huge food welfare plan for the poor and protect growers from having to sell at a loss.
Increases in the purchase price every year has led to bumper harvests since 2007, boosting stocks at government warehouses, which are now overflowing, with extra grains stored under tarpaulin sheets.